|
|
|
|
|
|
Commodity Fact Sheet
March 2003
What’s at Stake for Soybeans and Meal?
On Dec. 11, 2002, the United States concluded negotiations on a free trade agreement (FTA) with Chile, the first such arrangement with a South American country. This agreement, which Congress must now approve and enact implementing legislation, will provide America’s farmers, ranchers, food processors, and the businesses they support with improved, and in many cases, new access to Chile’s market of 15 million consumers. This comprehensive agreement calls for duty-free access on all products and addresses other trade measures for both countries.
U.S. Soybeans and Soybean Meal Gain Improved Access to Chile’s Market
Before the agreement … U.S. soybean and soybean meal exports face a 6-percent import tariff. Without preferential access, U.S. soybean and soybean meal exports are at a disadvantage to products from Brazil and Argentina. The U.S. share of Chile’s soybean market, 98,000 tons valued at $17 million in 2001, averaged 5 percent from 1999-2001. The U.S. share of Chile’s soybean meal market, valued at $80 million in 2001, averaged 1 percent from 1999-2001.
With the agreement … U.S. soybean and soybean meal exports gain preferential access because the existing tariff is immediately eliminated. This puts the United States on a more competitive footing with major suppliers. Brazil and Argentina will face soybean tariffs of 0.42 percent in 2004.
Chilean Soybean and Soybean Meal Secure Improved Access to U.S. Buyers
Before the agreement … Chilean soymeal faces a tariff of 0.45 cent/kg., while Chilean soybeans are permitted to enter duty free. Chile’s share of the U.S. soybean import market averaged 1-2 percent from 1999-2001, and there have been no shipments of soybean meal in recent years.
With the agreement … Chilean soybean meal gains preferential access as the existing 0.45 cent/kg. tariff is immediately eliminated.
Return to U.S.-Chile FTA
Commodity Fact Sheet Page
 |
|
|